Thursday, February 14, 2013

Ethiopia Coaxes Investors as It Struggles to Finance Growth Plan

Ethiopia Coaxes Investors as It Struggles to Finance Growth Plan

Chinese Minister of Commerce Chen Deming (L) exchanges documents with Sufian Ahmed, Ethiopia's minister of finance and economic development after signing an economic and trade cooperation agreement in Addis Ababa, capital of Ethiopia, Jan. 11, 2010. (Xinhua/Xiong Sihao)

Ethiopia Coaxes Investors as It Struggles to Finance Growth Plan

Source: Bloomberg

Ethiopia’s government plans to attract more foreign investment and boost domestic savings as it struggles to finance infrastructure and other development projects, State Minister of Finance Abraham Tekeste said.
The government is seeking “concessional loans” from development banks for roads and power lines and is “aggressively promoting” investment from Europe and the Middle East, Abraham said in an interview in the capital, Addis Ababa. Natural resources, improving infrastructure and cheap labor and power mean there are “bankable” opportunities in areas such as chemicals and agro-processing, he said.
Africa’s second-most populous nation plans to spend 144 billion birr ($7.8 billion) developing its economy this fiscal year as part of a five-year plan that ends in mid-2015. Investments are to be made in rail, power, sugar, roads and housing projects as Ethiopia seeks to become an industrialized middle-income nation by 2025.
“Finance has become a challenge,” Abraham said on Feb. 8. “As we intensify implementation of the plan, finance is increasingly becoming a critical constraint.”
Growth in sub-Saharan Africa’s fourth-biggest economy slowed to 8.5 percent in the 12 months to July 7, the end of Ethiopia’s fiscal year, from 11.4 percent a year earlier, as agricultural productivity gains slowed, Abraham said. The expansion is expected to accelerate to more than 10 percent this year as investment in farming boosts output, he said. The International Monetary Fund projects growth will be 6.5 percent.
Plan ‘Rethink’
The government has been urged by the IMF to “rethink” its infrastructure investments and modify a requirement that commercial banks buy central-bank securities equivalent to 27 percent of the loans to help fund development projects. The Washington-based lender also advised the government to raise official interest rates, which are currently at about 5 percent.
Demand for credit from public enterprises is crimping private industry and an inflation rate well above lending rates is discouraging saving, the IMF said in October. Annual inflation slowed to 12.5 percent in January from 12.9 percent the month before, according to the country’s statistics agency.
The government will conduct a mid-term review of the five- year growth plan at the end of this fiscal year, Abraham said. Projects that boost business, such as a railway that links Addis Ababa to Djibouti, the country’s main trade route, and hydropower dams, will be prioritized, he said.
China, India
The Export-Import Bank of China loaned Ethiopia $475 million for railways in June, according to Finance Ministry data. The government is also discussing advances with India and other countries for the project, Abraham said.
While the country experienced a surge in demand for foreign exchange due to “uncertainty” at the time of former Prime Minister Meles Zenawi’s illness and death in August, the central bank’s reserves haven’t dropped below the “critical level” of covering three months’ worth of imports, Abraham said. Ethiopia’s trade deficit was $7.5 billion last year.
Ethiopia’s national savings rate as a proportion of gross domestic product increased to 16.5 percent from 12.8 percent last year as business saved for investment, bank branches were opened, people were educated about the benefits of saving and new instruments were offered, including bonds to fund what will be Africa’s largest hydropower project, the Grand Ethiopian Renaissance Dam, Abraham said.
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Comment from: Nostra Daimus [Visitor]
Ayee! Min yeshalal? There goes the neighbourhood!
02/11/13 @ 22:36

Comment from: truth [Visitor]
Priority #1
Who will finance the railway link between Mekele and Djibouti? 
02/12/13 @ 03:42

Comment from: C'est moi senait [Visitor]
Here we are again reading the weyannes FAMAIN ECONOMY based on borrowing . One can not predict the out come of the beggar economy run by Failthy DeDeb weyannes economist ..
02/12/13 @ 03:45

Comment from: Nenewe [Visitor]
Financial dire straits.
As the minister said the gov't infrastructure investments should be prioritized. That would free up much needed financial resources for the private sector which is increasingly the backbone of the economy.

What the minister doesn't mention as a solution is the scrapping of a system based on corruption, patronage and nepotism.

There is no accountability and transparence in the gov't handling of the economy. This corrupt political & economic system we have in Ethiopia present a huge challenge and the gov't is powerless to address it. The system is so corrupt and those who benefit from it are deeply entrenched in the economic system it's nt an easy task for anyone to deal with.
02/12/13 @ 08:16

Comment from: Amlak [Visitor]
"Africa’s second-most populous nation plans to spend 144 billion birr ($7.8 billion)"

This is misleading information as usual by the greedy west that is looting the world in the name of banking, investment, Insurance and so on. Four of the biggest British Banks including Barcleys and CHSB have been engaging with the worst criminal activities including working with Drug cartels to white wash their criminal money, Having secret bank branches that are serving those to avoid taxes, having secret accounts including for many bad African leaders that are looting the nation, working with Sanctioned nations like Iraq during sadam era, Libya during Gadaffi Era, Iran, Sudan and so on.

The day western banks (system), super markets, shops and the likes allowing to function in any developing nation especially Ethiopia, that day will be the end of the nation. It is worst than any foreign military force invading the nation. Because this is the visible enemy. But the western banking system/banks, businesses and the likes are the invisible enemies have no merci to anyone but damaging the nation economy in a way never ever survived. Profit for them is more than any human soul including themselves and nature in general. When it comes to profit, they have no merci on anything. It is like killing the animal to eat them meat until its bones.

144Billion Birr in Ethiopia could be 144 billion USD in the west. In Ethiopia it is just like 144 billion USD.

Day laborer in Ethiopia earns about 80 birr. Day laborer in the west also gets 80 Dollars or more. Renting an average home in Ethiopia costs 350 birr in national level. Renting an average home in USA cost more than 1000 dollars. Other bills in Ethiopia are with much lees numbers in Birr than in the west with Dollar.

So, the ignorant west need to stop misleading the world thinking if they say so, the rest has to accept it.

144 billion Birr in Ethiopia is like 144 billion Dollars in USA. But these ignorant, they don't get it. In Ethiopia we don't need extra costs for energy or air conditioning as it is the case in the west because of the weather. There are other extra costs in the west related to the weather and the economic system and life standard. Therefore, 144 billion Birr in Ethiopia is like 144 billion USD.

Who cares they accept it or not. But we know it and we are saying it to those cheated by them for years and the internet era is making the situation difficult for them to say and do anything they want about other nations especially teh bad ones with lies and misleading information.

Ethiopia needs to give the biggest priority to domestic/Ethiopian investors which is the best and only strategy in the long run benefits the nation. Or else, the western companies and investments will behave like the Serengeti wild animal Migration to a green grass field and after a while the land would become empty and dry that make them to move on to the next victim. This is the true nature of teh Capitalism system dealing with other nations mainly teh weak and poor ones. Just eat them to the bone as worst as no one survives generations to come. .

Look how their super market chains that are behaving pure liars and criminals leveling as Beef meat while selling horse meat which is very dangerous because of the hormone the horses are getting. Do you think they will hesitate even for a second to cheat and commit any crime against the Africans they think are dump and worth nothing and treating them that way including in their country?

No western financial institutions including banks, insurances, leasing land for long term, super market chains, snake/Junky bars and the likes in Ethiopia. They just will destroy the nation for good and will move on to the next victim. We have to take time and grow a study growth in our way by ourselves rather than being hasty and lose everything to the greedy western businesses where their financial system and doing businesses are worst than slavery and colonization in combined.

Ethiopia is doing her best with knowledge transfer strategy working with countries like China, Japan, Korea, France, Brazil, India and so on. 
02/12/13 @ 09:58

Comment from: sf [Visitor]
@Amlak [Visitor],

You said,"144Billion Birr in Ethiopia could be 144 billion USD in the west. In Ethiopia it is just like 144 billion USD."
Are you joking or is it a new way of money transaction in Dedebit land?
I am Sorry for Amlak Poor calculation.
02/12/13 @ 13:49

Comment from: TEDDY [Visitor]
Here we are again ,Agazi officials are borrowing billion of moneys from Western Banks to pay their Chinese Masters .For the Majority of the Ethiopian Peoples ,A Highways which he could not even have the means to pay a car,an electric Dam always living under candles lights ,a factory for chinese goods to be exported for their own benefits not a single penny to local peoples .worst without the least transfert of Technology .
02/12/13 @ 15:20

Comment from: Ts [Visitor]

Even I don't think that a tie loan for railway construction has a return to Ethiopia because the Country is importing more than Exporting. Here, attributes to the railway, the country is incurring three major costs: repay the loan, and high outflow of hard currency to import goods, and collapse of domestic infant industries. If possible, that the loan should be used to finish the Dam construction.

Amlak, you are so insightful and a brilliant. Please also can you post under the previous topic of discussion: IBM....
02/12/13 @ 16:23

Comment from: AGAZIT WOMAN [Visitor]

Anta wusha BASTARD ERITREAN,why dont you buzz of from this site and may god burn yours & alikes souls in hell.

Any development ,work,project that had being done or drawn in a plan in Tigray turns your Toxic liver organ and burned like alcohol does to the body.

In your case it is your envy ,jelousy culture that is eating you inside out when ever you hear good things about ethiopia or the region Tigray.

Not only we will build rail road from Djiboute to mekele,but connecting Tigray with the rest of Ethiopia and africa on your graveyard.

Dont you know it is the heroic Tigray people that are contributing thier hard earn money to the nile project morethan anyother Ethiopians?

Unlike scumbags Eritreans like you and the few coward Ethiopians who hates to see development in Tigray,we the selfless fighters Tigray people dont suffer from that type of backward envious,jelousy culture when we see development in the rest of ethiopia and even in a foreign country Ethiopia.

The Tigray people have the mentality of a winner no matter what economicall class they might be.

Because with that kind of positive mentality nothing is impossible to develop in Ethiopia.

to be continued-
02/12/13 @ 16:44

Comment from: AGAZIT WOMAN [Visitor]

Dear ethiopians many times i tried to instill many positive things in your mind such as NOT ONLY DEVELOPMENT BUT FIGHTING CORRUPT OFFICIALS,FIGHTING THE LACK OF TRANSPARENCY which is very crucial combating poverty.

Some of our elected leaders had being heard telling ethiopians all we need to do is focus on development because no ethiopians have to fight a war.

These leaders are nothing but liars and self serving who lives luxurious ,comfortable life while the true Tigray fighters and Tigray people who liberated ethiopia with thier SWEAT,BLOOD,TEARS are living modest life with various difficulties.

But these few leaders continue to address ethiopians only to fight poverty without emphasising the needs for transparency,accountability which is very vital for development.

The accountability for corruption have to start from the prime minister all the way down to low paid cadres.

For the past 21 years ethiopia had received thrillions Birr from foeighn countries,Grants,loans that could have transformed Ethiopia on the equal level of PRE-1935 OR PRE WORLD WAR II JAPAN.

02/12/13 @ 17:00

Comment from: Gashe mamo [Visitor]

According to, Dagong Global Credit Rating, Ethiopia's credit rating is CCC which is one of the lowest. Comparable to speculative grade bond, or junk bond. It has a high risk of default or other adverse credit events.

My speculation is that when creditors from China or India are investing they are looking for other attractive features; such as cheap labour....

Bearing this in mind, our dictators has invaded the main trade union and other major labour unions, so that the work force are not able to demand their right, making them suitable for foreigners to come and abuse and treat them as semi-slave.

I've heard a Chinese company in Ethiopia, who doesn't allow a union and who declared that they are not under any Ethiopian law, except Chinese law.

My point is, thanks to the regime, in order to attract investors we are not selling, not only our land but our dignity. You don't have to travel no where, a Chinese will come to our house to abuse and miss treat us and the regime is in their side!......

02/12/13 @ 17:29

Comment from: Nenewe [Visitor]
lately your comments are more focused on the real issues facing the country. I admire you taking stand agaist all odds.
But as you might know most of the most powerful people both economically and politically are from Tigrai.

Corruption is one of the biggest if not the single biggest, problem in Ethiopia. Our leaders are corrupt and those low leevl cadres and state functionaries learn from them.
How can we deal with this huge problem when the most corrupt people are in powerful position?

The entire people in top gov't and party positions are infected by it. Who do you think dare hold them accountable? The judges are corrupt, too because they are part of the system.

If you start taking one corrupt person down the others will come crumbling down like house of cards. They know the consequence of such measures so they don't let you investigate in the first place. It was tried before and didn't go anywhere.

As you said the aid money that have been flowing into the country have been rerouted back to foreign banks. Who have the power to do this? Again these powerful people in the gov't and the party.
02/12/13 @ 18:07

Comment from: Ash [Visitor]
Gashe mamo kilo,

R u saying the communist china doesn't want worker union?

Why the hell u want union? So that u can demand higher and higher wage without working... Even in America most place not unionized and people work under them nobody died... I think worker union time lone passed... This is American black demanding and marching for voting right , to serve in army, anti segregation.... Or OLF fighting to have their language respected...
All I am saying to u Ms.Gashe mamo kilo...

A. U came and open industry and allow ur worker to have union
B. easy dont work for Chinese company if u value ur work union more the work or earring an income

One ore time u guys sleep for 3000 years we don't have time ur kind of people ur worker union can't be food for them... No body is foolish if the Chinese abused their worker soon or later they pay for it... U dont become billion dollar company by abusing ur order... U want to keep the most productive worker by paying them fare market value...
02/12/13 @ 19:23

Comment from: AGAZIT WOMAN [Visitor]

Please understand not all government officials are corrupt in ethiopia.

As i told everyone on this site my standards for life as well as for development in Ethiopia is far more higher than the lebas,corrupt who comes on this site to bragg about few computers being disturbuted in Tigray or the few kilo meters,the few schools being built in Tigray or the rest of Ethiopia.

My standard of development for Tigray and the rest of ethiopia regions are in the same mind set as western countries engineers which is massive impressive development from bottom to top in all major cities of Ethiopia.

The same is true when it comes to corruption my standard of holding officials accountable is Big.

What that means is for you and others few corrupt leaders,officials might not be that much.

But in my case even few corrupt leaders,officials are too too much.

That is why you hear me talk about holding officials,leaders accountable no matter how small or big corruption is in ethiopia.

It is also true when it comes to corruption individuals like you and the rest of ethiopians are equally to blame if you allowe government buerucrat to bribe you or for ethiopians to bribe officials.

It is almost like catch 21.So the blame starts from your selves.

And i careless about the well being of political leaders in ethiopia because i care about the average person well being.

And as an ethiopian one does not have to be an opposition or party members to demand for greater transparency ,accountability in any government including here in our country.

In the case of Ethiopia,citizens have to understand that it is not the EPRDF leaders ,OFFICIALS who liberate them,but the POOR TIGRAY MOTHERS,TIGRAY FATHERS and the ENTIER TIGRAY PEOPLE THAT sacarificed thier children & meager resources.

And there for no ethiopians should praise, fear any officials,leaders,cadres when it comes to defending the land of the LAW & CONSTITUTION.

I am not your average leba ,stupid ,backward cadres who clapp thier hands for primitive project or development that takes place in Tigray or the rest of ethiopia regions.

That is why you often read my gallant comments stating that "we can do better"

BTW:if you think WE the "TIGRES" control the army or the government which i doubted,but that would not be bad.

Because "TIGRES" are brave,hard working,fair,kind,honest and have being safe guarding Ethiopia and her people for thousands of years from various powerful foreign invaders that were crushed here in Tigray.

In fact the true hard workers in the government that serves the masses of ethiopia from the bottom of thier hearts are Tigray people.

No offense to other ethnics in the government,but they seems to be careless and have no respect to the tax payers of average ethiopians.

These scumbags non Tigray government officials,in officess,in police stations do not respect ethiopians or provide proffesional service.

But the majority Tigray officials serve the people of Ethiopia proffesionally and expediatley to complete any business transaction to engage in business of development to help our country ethiopia.

One of the reason the Tigray fighters,militias were able to succesfuly defeat various enemies on the battlefield was this Tigray Culture,Disipline,honesty,kindness,fairness toward each others and even toward our enemies who were captured on the battlfield.

Do not blame the Tigray people for the corruptions,lazyness,unfairness non tigray officials,leaders .While ignoring your own leba leaders,officials in the region you reside in.


The spineless bozena no body on this site can pin point where you stand on issues.

One day you are OLF/ONLF SUPPORTER.

The next day you are few Tplf leaders supporter.

The next next day you denounce tplf and embrace something else.

Why dont you just shut the hell up until you make up your mind.

Spineless leba like you should not mention about our glorious 7000 years ethiopia history.

Anta leba wondagered the JAPANESE were not industrialized until the late 19th century.

By most part The chinese are still a developing country not fully developed as per say Europe,u.s.a or japan.

And chinese development started about the late 1970s after richard nixon visited China.

Wusha shut your mouth before speaking about Ethiopia thousands of glorious years with out understanding WORLD HISTORY.

The chinese ,japanese are similar with ethiopia case and we are not too far from these countries to develop ethiopia.

But the problem is we have to many WUSHA,SPINELESS,LEBA COWARD corrupt sherumtas like you all over ethiopia that is PESSIMISTS and inhibiting development.

to be continued
02/12/13 @ 21:33

Comment from: Kassa [Visitor]
You can not cure corruption without addressing the cause of corruption. The main cause of corruption is lack of accountability to tax payers or citizens. For example in Tegray if there is proper free election public choose their local government from kebelle to woreda, then the politicians accountable to the public. The judiciary should be independent, the military should be independent, the media should be free to expose corruption and wrong doing, media means middleman between public and authorities, without free responsible media how do public know any wrong doing in a society? 
02/12/13 @ 22:02

Comment from: Gashe mamo [Visitor]

@Ash -tray for a butt of a cigarette called Weyanne .

First, I have a problem in understanding your point.

I don't care about Chinese labour law, I care about the Ethiopian work force and the Ethiopian labour proclamation, guarantees workers’ right to organize, right to recognition of trade Unions, right to collective bargaining and right to strike, amongst other things. Only Article 3/2/d of the labour proclamation disallows the unionizations of workers who are governed by the special law. This includes civil servants, defense and police force, judges and public prosecutors.... I am trying to show this is openly violated!..

where do you expect the workers to go when they are terminated illegally?..when they are introduced to hazardous working and environmental conditions? When they are denied their basic salary? ......

We have already experienced that the law enforcement bodies were not able to do or prompt justice. How do we make those corrupt officials listen and act on the first day of signing a contract?

02/12/13 @ 22:11

Comment from: my2cents [Visitor]

It is oxymororonic to use the words Ethiopia and Economy in the same sentence unfortunately. A convoluted existence, where a few outsiders prosper and where the mass and opposition are mere obstructionists, play out in nightmarish Ethiopia. Veni Vidi Vici (Julius Caesar 47BC) or could it have been TPLF who came, saw and conquered and still rule with consternation and controlling hands after 21-years?
02/12/13 @ 22:25

Comment from: Ash [Visitor]
Dearest Gashe mamo kilo,

U dont need worker union for ur problem that u lasted...did u heard of court? Did u heard of class action sue?

Worker union is for lazy people who want to make their wage higher without working... I know those work union leader they r more corrupted all the owner have to do is bribe the worker union... End of story.

In America not 100% company have worker union... In fact the worker union is the major reason for company closing down and shipped to china...


Yes! U R right I am not OLF, or TPLF I am Ethiopian that supposed to be

Anyhow if u want me go away from this site... ( even so I never ask other to leave this site) I offer u an oppourtinty to kick me out from ( by the way

Very simple question

Does Azab and Meles looted billion of birr? Or the R clear as it get... Never took a penny from Ethiopia people..

I am not asking u to provid any evidence but in ur best guess what do u think...

Regales of ur answer u should defends It...if I am satscifed with ur answer I good as gone as wind

Once u answer it u should stay with ur stand it I notes u chage ur stand then all beat is off

Mr kass,

I thought u know the source of corruption.... I thought wrong...there are many reason why people can be corrupted... Anyone can be corrupted if u don't pay him a living wage... We want Azab to live in $ 3000 birr salery or retirement ... We want our CEO to make 10,000 birr while they are runing billion dollars company... If we pretending paying them then we keep on getting courrputed official regardless of his or ethinc

Saying that if u ask why more Tigray official are work harder the sample answer is they are part of the team they want Meles to succused on the other hand the Amhara and the Oromo they might not share the view of Meles but they only there to survived so they don't mind bribe because they kill two bride in one stone... They are sabotaging the government they don't like on the other hand they have to provide for their family income so bribe seen as normal

Beside corruption sometime u make it the bad thing but sometimes it make business go faster and smooth even helping the economy grow... Only those with money but without time give bribe...

Since the government doesn't collect tax correctly this people give form of tax willingly... After all tax collected to pay the official this way the official get his salery directly from bribe but if the tax goes to government the government might miss use the money instead the official get his cut directly and provide fast service every one is happy.

Then there is bad corruption where individual bribe to disregarded the law such as enovernment and health law that affect the public, or court system.

I am taking about to get a land and start ur business if the Waite is 7 years then u pay bribe and u get ur land the next day.. Is not business become faster until we get a better system... Same with electric, and water if u get the next day u can start ur business and u cover ur cost otherwise if u Waite like everyone then u lose because sometime those who are willing to Waite is can afford it...example in America if u want ur passport issued fast u pay express fee which much higher then regular fee... The question is if u r not going anywhere u choice the regulare pay the same in Ethiopia if u can affored to Waite why u care other pay bribe

02/12/13 @ 22:48

Comment from: Gashe mamo [Visitor]
Mr. Uncooked ASHuke
The important picture is, laws and regulations are violated. The labour law is not the first and will not be the last. It goes up to the constitution. This is a result of a fractured and obsolete policies. Those policies make up the regime which in turn has become dysfunctional.

Well, you know that your support for this is similar to you,Mr ASHuke ,being rejoicing when they put you in a coffin to bury you alive, and say ashes to your grave!

If you couldn't understand this I will assume that you are still in incubator, with lots of wet dippers and ignore the incoming comments........

02/13/13 @ 00:55

Comment from: Bichinchiru [Visitor]

AW to Ash," Anta leba wondagered..."
That's so funny!I can't stop laughing.
02/13/13 @ 01:08

Comment from: Nenewe [Visitor]

First off I agree with you that not all officials are corupt.And I didn't mean to pick out any particular party or group of people.

I wonder if you get the full picture of what I meant by a political system based on patronage, neopotism, & cronyism. The ordinary people of Ethiopia (I mean all Ethiopians, I don't like you refering to Tigrai & Ethiopians)have been at the receiving end of the brunt of hardships caused by corruption. leave aside the low level corruption here and there although it can't be ignored altogether.

It is the endemic corruption at the highest level that is the problem. Corruption at various level of regional and sub-regional level is a peanuts compare to those at the federal level.

"In the case of Ethiopia,citizens have to understand that it is not the EPRDF leaders ,OFFICIALS who liberate them,but the POOR TIGRAY MOTHERS,TIGRAY FATHERS and the ENTIER TIGRAY PEOPLE THAT sacarificed thier children & meager resources."

I agree with you on this point but who is ripping off the fruits of your sacrifices? Ordinary Ethiopians or those in power and their cronies? EPRDF is a coalition party and the gov't is run by this coalition, right. like any coalition there are stronger parties and weaker ones. For good measure TPLF is by far the most influencial party in the governing coalition.

To say those non Tigrai EPRDF officials in the coalition are to blame because those from TPLF are honest and selfless is ingenuous on your part, to say he least.

To get rid of corruption is nearly impossible but it is possible to bring it down to a level that wouldn't raise eyebrows and work your way down to the lowest level.

Huge conglomerates and those top officials in the army and gov't who have a huge interests in these businesses must open their books to independent inspectors and declare their incomes.All public expenditures must be scrutinized and any discrepency must be explained without any political interference. Easier said than done.The shareholders of these mega businesses are state secrets and that is where the crux of the matter lies.

I don't think they would be willing to do so as doing so would put them in embarrasing position in the eyes of the public and may ultimately cost them their political clout.

"One of the reason the Tigray fighters,militias were able to succesfuly defeat various enemies on the battlefield was this Tigray Culture,Disipline,honesty,kindness,fairness toward each others and even toward our enemies who were captured on the battlfield."

But that was in the battlefield as you constantly remind us in your various comments. It may have served you well, then. Now it is a different ball game.

Your position, whatever it might be, at the regional level may not enable you to see the whole picture at federal level and the rule of the game is a world away from the regional & sub- regional level.

Last but not by any means least, I am not blaming the people of Tigrai for the wrongs of our gov't. I blame the system put in place and manipulated to serve the chosen few.
02/13/13 @ 05:07

Comment from: Ash [Visitor]
Dearest Gashe mamo kilo,

What u r saying ifu understand it with my limited English is a bigger can set criteria who he is going to receive his alm....and force u to give alm with restrict criteria he set up for u to follow..

Dearest Gashe mamo kilo, Ethiopia have a choice so No to Chinese but Ethiopia can't independently setup law and regulation and tell the Chinese to follow it... Do u understand yes the American can do it but Ethiopia all Ethiopia have is the right to say no.... I don't want ur investment...even the Chinese at first setup very relent rule to attract the investment once u get investment and ur power grow then u start demanding right not at first this is business...

By the way r u telling me the Chinese law is worst then Ethiopia? U r to funny the Chinese government send his top brain to study in America most of the business leader are American educated so they must know a thing or two...

I know for shire u never build anything in Ethiopia u will know how Ethiopia are lazy people they will drive u crazy even ur family they want u relax they don't know the value of time and u want to give them worker union
02/13/13 @ 05:08

Comment from: Ash [Visitor]

U look like u worried about opening up the official book.. Why not start from VOA, Esat,cud, OLF, ONLF, ginbot 7/11anyone who accusing opening up TPLF officer book first he have to open his book.

Second what the point of making them open their book? U don't want them to make million?

Let me give u one very simple example let take EAL CEO let say u make him open his book and u find out he have million birr in his account... So u fire him and u hire another guy years after years the new guy open his book and u find nothing... But EAL running at cost no profit years after years EAL only break even

Second example let take Ethiopia power CEO u make him open his book and u find 100 million in his account and fire him and u hire another guy but all dam constriction stop due luck of visionary CEO

My question is do u worry how much the CEO get or how much they contribute to the progress of their company.

Let even take ur Addis Ababa Mayer... Do u really care how much many he make with corruption or u want to see developed city..

I am not saying all those who r corrupted are a better leader.... All I am saying is fire them for not doing their job but not for corruption... Do u understand what I am saying...

Let me ask u would u bribe a doctor to safe ur live?

Do u ever bribe someone in Mangustiu time to safe ur live?

If u do business in Ethiopia u apply for land and they tell u wait 7 years for power 3 year for water another 2 years for land line 4 years... Are u going to wait or are u going to pay bribe and get it done...the next day...

I know I am wasting my time because u understand corruption from book... And u think u can solve it by forcing them to open their book... All the office has to do is open an a/c oversea and hide his money...and show u 3000 birr in his account in Ethiopia... Don't tell me all bank oversea can report him how about buying gold and put it in bank safe in western country..they will be very creative and Ethiopia will lose more if every office put his money outside of Ethiopia instead of investing in Ethiopia openly 
02/13/13 @ 05:38

Comment from: Ts [Visitor]
@Ash, @Nenewe

Auditing is a proper action.

1) Higher political leaders shall get a fairly high salary. They are there to enable others more to do business.

2) They shall open their accounts for auditing. If they found corrupted, they must face justice. These corrupted, after all, disabled others not to accomplish work efficiently, and would cry against non-corrupted for not doing works.

3) The account of people who involve in corruption, irrespective of where and type of resources they have, they earned it by stealing from others and not by working. The works to be done, but not because of improper resources acquisition remain unaccomplished.
02/13/13 @ 06:00

Comment from: Ts [Visitor]
Private business, company and corporations also need to be audited. Auditing these has many implications: taxes, business success, jobs etc.
02/13/13 @ 06:08

Comment from: Nenewe [Visitor]

I agree with you on the last two points. Political leaders are not supposed to be paid fairly higher salary.They have a lot of perks in terms of accomodation, tarnsport,sometimes for their family too,etc, and hence less expenses. The kickbacks they get from other interests and their own business interests are in conflict with their duties. And hence systemic corruption and complete lack of transparency in terms of their shady & dubious dealings on the sidelines.

On another note, did you make the head and tail of what Ash said? Must have taken you an unusual amount of time and tasted your patience, man.

I have long given up reading his sub-standard english with no substance whatsoever.
02/13/13 @ 06:22

Comment from: Ash [Visitor]
@TS, u look like u r the better one.

Yes most of currption can be avoided by paying reasonable salary.

In Ethiopia I heard music artist get 600,000 per cd ( I don't know if it is truth) but we pay our CEO 3000 birr to run billion birr company.

Again auditing also I don't belived in auditing because u will give more power for the guy who doing auditing so he will demand bribe the best way is to pay the real salary to every one all collect tax from every one.

For example u work in zone X and u have Mayer that run zone x... And let assume there are 10,000 business people working in zone X... My question is not better for those 10,000 business people to pay 1000 per month to do business in that zone instead of paying birbe this 1000 birr used as administration free mind u this is not tax u pay tax to government but u want ur local government to run smoothly so u pay administration free every one who work in that x zone under government get paid from administration free... Now u make government as business the more u have business paying administration fee the batter so u will workday and night to attract business if u have one million business paying 1000 birr instead of 10,000 then u have billion birr per month u get payed million birr for job well do..

U see my idea is to make the government official millioner no to keep them poor when u do auditing and make them open their book u r try to keep them poor because in sense u don't want see them making million... Because their salary is 3000 birr by check on them u r keeping them poor... If u do that soon or later the good one leave government job and find private company that pay them good and u will be left with second grade workers.

Again I soultion is to make our official millioner if u have other method to make them millioner tell me but keeping them at poverty level doesn't help any one...

I use to rembeber in king Haile Time all the ras and minister are very rich I today money they are billioner... That is how u run ur country...

For example if u make all OLF, and cud leader millioner by making them part of government if they have money and power why they fighting u they work for their region instead of for themselves because u already take are of that for them.
02/13/13 @ 06:39

Comment from: Ts [Visitor]

You better refer to someone about the language if you feel there is a problem. You know that I have been also improving and language is not my field of specialization.

Have a good day.
02/13/13 @ 06:53

Comment from: Ts [Visitor]

My simple answer is that we are opting for advanced technology and better knowledge, especially from developed nations, because we see that these nations have better income and been also attracting immigrants mainly for this earnings. One of their functional systems is that they have efficient auditing system. If Ethiopia adopt this system fully, likely, it will increase efficiency and effectiveness.
02/13/13 @ 07:06

Comment from: Ash [Visitor]

I know auditing work but the question is who is doing the auditing? The guy who doing the auditing is not payed properly then he is forced to take bribe....

I like electric cashier system that is concted to income tax office the government getting their cut automatically ... Yes auditing might work if we use advance thechology but I am not worried about auditing why u want to audit... In America no body audit u every years... You urself calculate ur tax and pay whatever tax come to u...yes government have the right to audit u but they don't do it all they do is 1% auditing out of 100 for years u might not be audited as long as u pay ur tax regularly u will be fine... In Ethiopia case almost every years they try to audit every business they don't trust the business to pay their tax so they go out and audit them when u send some one to audit then u are crating oppourinty for bribe .

For example u own and operate 100million birr company and u have to pay 10 million birr in tax after auditing the tax man say guess what I will only report 5 million if u do something for me u might agreed and pay 10 million next time they will send another guy and they will tell u u own 25 million in tax... Just to get back at u...what are u going to do u see u give more right for small time audited he can distroy ur business if u don't pay him bribe... Again did someone audit u every year to pay tax? But the government have the right to audit u but they don't do it because all they care is u pay something regularly and with in a reason..

Mr. newtown,


Political leaders are not supposed to be paid fairly higher salary.They have a lot of perks in terms of accomodation, tarnsport,sometimes for their family too,etc, and hence less expenses


Why not any body get paid in america... If u r parking lot attendance if they cover ur health care that will do it u work for free.

If u r taxi driver if they give u food u can drive them every where...

What the point of not paying the official? To keep them poor that is the aim? Or u mistaken honesty for poverty?

That is why exta Assab call u the keeper of poverty...

How is going to work ur perks system... Does it stop when u lose ur post and u become poor but honest.

I remember our great sport family we didn't pay them but we say they did what the did for their country and we left them in poverty most of our great artist died in poverty even homeless no problem as long as they work for they country they should be happy... If the perks is so good then why some one looking for kick back? Why even some one want to be corrupt? The simple reason is they want get rich ... But if u give them rich then u will reduced corruption to acceptable level...

Ask urself why traffic police in America doesn't take bribe but in Africa and Ethiopia they take bribe... Do u think the American policy officer is have high morel value then Ethiopian counter part or they get paid well...

If u pay some one well u attract the bast worker... If u don't want pay ur government official well and if u don't allow them to get kick back by making the open their book and force them to live in 3000 birr the only thing that can do is leave their post and work for themselves and make million birr... Yes u might get 1000 replacement but the question is can u get the best one for cheap? I doubt it and this is my last reply to u... Have a nice life

02/13/13 @ 08:23

Comment from: gudfela [Visitor]

You are trying so hard to beat the argument by writing garbage and most of it is not clear except your blind information trying to match western system that you want to apply to Ethiopia. Have you noticed lately, West is economically in trouble rather it is going back ward to 11th century Feudalism. Then as copy cat you want to apply this. Western people are too smart to buy such system therefore they will prevail in preserving their true democracy and constitution. Too bad we have backewar people who beats the wrong drum every time.
02/13/13 @ 08:44

Comment from: Ts [Visitor]

When the auditor takes a bribe, the same apply on that person (e.g. anti-corruption rule of law).

In America, especially for large business, not only annual tax return, but revenue agency is also electronically monitoring financial transactions. There is high business risk for any fraud.
02/13/13 @ 08:56

Comment from: Ash [Visitor]

I all ready agreed to use technology to reduse the power of an tax auditor, in Ethiopia they have God they come and close ur business if they like it... It all guess work and estimate they can estimate 10 million birr in tax while u only making 10 million they don't care... So I worried they give power to anyone if electronic tax system used then it is oaky..
Beside we have to reduse the power of income tax officer let say if they estimate 10 million in tax u should have recourse in commerce court that only deal in business matter... So the tax man should take there case against u to commerce court and u fight out...

All in all I agreed in ur electric system

Now about paying official higher salary... Agree to but how much is high? 10,000 birr 100,000 birr or one million birr?

I say one million birr to start with if we have 1000 government official and CEO we pay them one million each that will be cool one billion birr if u think about very cheap price think about it if cud leader paid one million birr to govern Amhara region or Oromo party leader paid one million birr per year to govern oromia region he will work hard to be elected next term instead of fighting the government he will work with government to make economical progress instead of joining OLF and other opp. the more we pay them the batter..

How much are u willing to pay someone if I told u he will improved Ethiopian economy by ten fold and make Ethiopia middle income should not be the object if some one actually win over poverty and famine and deasese... So we Ethiopia should learn to pay to get a great service

Another thing I want to say is we all like to copy American tax system to but what we forget is American government doesn't only collect tax they provide service for tax payer... I am not talking about building road I am talking about indivual service ..

Let say if coca cola pay thax they are happy to pay tax because the government give them a lot of right such as copy right protection, bankruptcy protection, tax allowance for business expenses trade marke portection etc etc.

In Ethiopia they start but up to now they just collect tax..that all..

For example u pay tax for 50 years and ur business go under they don't care they will sale ur house and make u homeless then what is ur benefit paying tax if they don't help u when u need them...

I say Ethiopia should protect business from bankruptcy
Second retirement fund must be set up for business tax payer and when they become retired they should get government retirement fund... U put more in ur retirement fund then u get back more so tax paying become insurance policy where u can get back what u paid over the years... Otherwise only collecting tax will not work.

3rd example

Let say u r tax driver u getting cash money u will not report what u get so pay next nothing tax... But the government can make it so attractive to pay tax people should fight to pay tax..

Example call all tax owner... And tell them u will work with them if they are willing to work with u.

Let say there are 5000 taxi owner in Addis Ababa. U will tell them start paying tax and I will stop is issuing taxi ownership permit..

Now the taxi owner doesn't more taxi in the street so they will be happy to pay tax to stop government from flooding the u see the government work for their tax .

Now the government make it next to impossible to get new taxi ownership permit... The next day the government increased the fee to 100,000 birr to get new taxi ownership permit..

Now those 5,000 taxi owner will see the value of their permit and they don't want to lost so they will pay tax year after year..

( Now u might Addis Ababa need more taxi not less) I understand that but I am just giving u an example how u can attract people to pay tax. This work for any business if u r onion saler or butter saler u want permit once u get registor the government will make it very difficalt for new enters to the market this way the existing one can start respecting the law..

This good tea room, cake shops, Resturant , night club million of the same business must be stopped..

My last point is we have very old taxi on the road if the government make the permit 100,000 birr then those who are old taxi can sale their taxi permit for 100,000 birr and retired.. The new owner can be forced to buy new taxi this another way of paying back to those who work in taxi business for 40 years and the are old and have no outer income they can be retired with dignity for the job well do.. 
02/13/13 @ 12:36

Comment from: Ts [Visitor]
Sure, you have good proposals.
02/13/13 @ 13:39

Comment from: HagereEthiopia [Visitor]
"...the central bank’s reserves haven’t dropped below the “critical level” of covering three months’ worth of imports, Abraham said. Ethiopia’s trade deficit was $7.5 billion last year.."

Well one thing is for sure.. sooner or later GOE will not afford the ForEx, it will go below the "critical level" with such high deficit and a fast devaluing birr, it is just a matter of time. We are buying more than we are selling and on top of that all this borrowing? Thank god for aid $$s.

It looks to me the current GOE need to slow down for a number of reasons. Ethiopia is surrounded by enemies on all sides thanks to Meles and his ass kissing policies to please the West. Now he is dead and gone, Ethiopia may be exposed to the shabia, Alshebab and most of all the Sudan and Egypt threat. Not to mention what may take place internally.

It is also my belief too fast of a growth will be the road that leads to no where, it could become unsustainable. They need to pace it according to the economic woes of the world and the priority should be balance of tread. We are not immune to international problems since we depend on the 'international.' A nation whose main produce is buna and some other food stuff must not take so much debt or the dream of the middle class techno economy may be just that, a dream. The simple point here is that GOE is doing too much in such a short time there by putting too much stress on the economy.


I beleiev what Amlak is saying, correct me if I'm wrong.. is, 144Bbirr in Ethiopia is a very high amount of money from the perspective of Ethiopians that it feels like 144B$US. His error is his assumption the west is "ignorant." The West knows exactly what they are doing. I also fail to see what their banks have to do with GOE.. except may be to give us back the billions Meles, his wife and his thieving Tplf have in deposit with them.:D

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